Posts Tagged: investment performance

Calculating Operating Expense Ratio (OER)

What percentage of the gross rental income should a property owner expect to allocate toward expenses each year? The answer to this question is important, and allows you to quickly forecast whether or not a property will produce positive cash flow. But first, some definitions: Operating Expense Ratio is defined as the ratio between total… Read more »

Measuring the Performance of an Investment Property

If you have struggled to determine whether or not your rental property is a good investment, or to compare your real estate investment with other asset classes, you are not alone. In this blog post, we will go over some commonly-used performance measures and how to calculate them. We will define terms so that you… Read more »